The predictions of rates of oil production by Hubbert peak theory are made on the basis of prior rates of discovery as well as the anticipated rates of production. Therefore according to this theory once the peak of production is passed the rates of production will enter an exponential decline (Campbell & Laherrere,1998)
oil imports in 1970 (Ghosh 3). To continue, "During the 18-month period ending October 2000, gasoline and diesel prices hiked up over 50% throughout the United States" (Rueda), and they have risen even more dramatically in recent time
dependence on foreign oil decreased during the 1980s and 1990s, today it is higher than it has ever been, for a variety of reasons. One expert notes, "The United States has no national energy policy to enable us to manage our energy future to meet the pressing and sometimes conflicting goals of affordability, environmental protection, economic development, and security" (Sterzinger 5)
A weak dollar pushes investors into commodities as a hedge against inflation." (Iacob, 1) As a result, today, the global oil price stands at just a few cents above $69 per barrel
According to a report published by Business Week in January of 2009, "the price of a barrel of oil has fallen from a peak of almost $150 last summer to below $40 in recent weeks as demand for oil has fallen sharply in line with the global economic downturn." (O'Grady, 1) This would prompt OPEC to drastically reduce its production numbers, resulting at the time in the production of roughly 4
In taking this decision, member countries reiterated their firm commitment to the individually agreed production allocations, as well as their readiness to respond swiftly to any developments which might place oil market stability and their interests in jeopardy." (Vasconcelos, 1) In effect, the dichotomy of drastically reduced consumer confidence and OPEC's evident approach to protecting its market interests are predominantly resultant from a wartime and recessionary global economy
They also had the example of the oil industry leaders to use as a gage, as the industry itself manipulated pricing prior to OPECs inception and in fact resulted in OPECs inception. (Falola & Genova, 2005, p
23) The buyer and consumer are the only apposing characters in the game, yet this is true unconditionally in business, when cost is inflated or manipulated to increase profit buyers and therefore consumers pay more for a product that costs roughly the same amount to produce and therefore the consumer and buyer feel cheated. (Harford, 2006, p
Though some argue that the OPEC cartel and the additional member nations who collaborate with it do not really control the market there are also many who claim that they do, without question change production (lowering it when prices fall) to artificially drive prices back up. ("The OPEC Delusion," 1999, p. 18) (Kaplan, 1998, p
antitrust jurisprudence, the OPEC quota agreements that stabilize prices would likely be declared illegal, and other countries might also declare price fixing to be illegal under their respective competition laws. (Moore, 2003, p
Alternative Energy Options Alternative energy resolutions, will not change this reserve dominance or market share but will offset, only slightly until such time as alternatives are more dominant the need to buy oil, decreasing demand and creating a future need to drive prices back up. (Sterzinger, 2004, p
Consequently, the organization's authorities proposed and embarked on a public relations initiative to help repair OPEC's corporate image among the public and its stakeholders. First, the organization enhanced its engagement in social media and worked towards better relations with Asian consumers (Faucon, 2015)